facebookHi all, now that ibkr has set up office in sg, decided to open an account with them. But have some questions regarding their margin account. What happens if my cash balance falls below that amount? - Seedly

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Anonymous

01 Aug 2020

General Investing

Hi all, now that ibkr has set up office in sg, decided to open an account with them. But have some questions regarding their margin account. What happens if my cash balance falls below that amount?

Understand that there is a min 2000usd for their margin acct. Also, not planning to trade on margin, but under what circumstances would i accidentally tap on margin?

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Duane Cheng

Duane Cheng

01 Aug 2020

Financial Consultant at Prudential Assurance Company Singapore

Hi there,

You will use your margin, should you trade in CFDs which is leveraged trading. If your main purpose is just to buy equities and funds on the platform, you should be not be tapping into your margin in any case.

Margin trading requires a buffer, to ensure that you do not lose more than what your account's funding.

Hope i was able to answer your queries!

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